1. Technical Field
The present invention relates generally to the management of cattle for prime meat quality and improved investment returns to the producer. More specifically, the invention relates to methods for analyzing and improving the carcass value of beef cattle for the production of beef for human consumption by measuring, sorting and tracking animals individually and in groups for increased market value and better beef quality.
2. Description of Related Art
The cattle industry is constantly changing. Although some may disagree, cattle producers are in the food provision business in contrast to the ranching business. Beef production competes with other sources of protein available on the market, some of which are less expensive compared to the cost of steak, since steak or beef is considered a luxury item in most households both domestically and internationally.
When people buy or order a steak they expect to have an enjoyable culinary experience. A recent national survey showed that twenty percent of the time people do not have an enjoyable steak dining experience in part due to poor meat quality. Poor meat quality may arise from many different factors. One of the largest factors affecting meat quality is the breed of cattle being xe2x80x9cgrownxe2x80x9d for meat production. In efforts to increase production, some cattle producers produce larger amounts of red meat by utilizing large cattle breeds, which are primarily used as working animals, instead of slaughter cattle. As a result, the palatability characteristics of the meat produced from the larger cattle breeds suffer. Likewise, the conditions in which cattle are raised and maintained affects the meat characteristics of slaughter cattle. Exposure to prolonged periods of heat, shortages of food or water, and the vaccination program administered by the cattle producer affect the palatability and, thus the carcass prices, of the cattle sold for slaughter.
With regard to the mechanics of cattle sales, the long term practice of buying cattle on the average has allowed undesirable types of cattle to sell for a premium at the expense of the more desirable beef quality type of cattle. This result was in large part due to the economics of the cattle market. The beef packer buyer bought a large number of cattle based on the average value of all cattle purchased by the packer. This resulted in a price differential wherein the only cattle priced correctly were the average cattle. The poor quality cattle received a premium price, greater than their true carcass value, and higher quality cattle were discounted to make up the losses in the lower quality cattle. This practice encouraged cattle producers to do less than an adequate job in the selection of bulls and cows for slaughter cattle breeding and has allowed the cattle producer to raise and sell undesirable, low grade cattle and still obtain a premium price at sale. The net result of these production and buying methods has resulted in a steady decline in the consumption of beef by the market over the last twenty-five years.
Recently, the United States cattle market economy significantly changed. Beef packing companies had been buying cattle on a formula and cash basis and thus owned, or at least controlled, a large number of the available slaughter cattle population. The formula and cash basis was derived from cattle buying which occurred during the first two days of the business week. This trading set the market price and all cattle would trade thereafter in this price range during the remaining business week. Suddenly, large corporate beef packers started declining to buy on the formula driven markets and began to process beef which had been previously purchased. In effect, large packing companies left the market leaving smaller beef packers and independent dealers with an open trade cattle market, which resulted in a market price drop. Shortly thereafter, corporate beef packing companies reentered the cattle market and began buying slaughter cattle at much lower prices.
This change in purchasing by the beef packing industry caused slaughter cattle producers to realize that the quality of the live cattle carcass is just as important to the producer as it is to the beef packer. Market purchasing trends have placed additional investment risks on the cattle producer to bear increasing responsibility for potential diminution in the carcass value of the cattle being processed. As a result, formula pricing has been relegated as a past stopgap measure rarely used in the present cattle trading markets. Cattle market participants have now created a cattle market based on the value of the processed product which has required cattle producers to consider the xe2x80x9cend productxe2x80x9d value of the cattle they produce and sell.
The prior art has developed innovative technological improvements in live animal carcass evaluation. These improvements have become prominently used in cattle feed yards and production facilities. For example, U.S. Pat. No. 4,745,472 (Hayes) has proposed a method to accurately measure an animal""s external dimensions by scanning using video imaging techniques. Similarly, ultrasound backfat measurement of cattle is known, at least on an experimental basis, from the work of Professor John Brethour of Kansas State University""s Fort Hayes Experimental Station, as disclosed in an article entitled xe2x80x9cCattle Sorting Enters a New Agexe2x80x9d appearing at pages 1-5 and 8 of the September, 1994 issue of D. J. FEEDER MANAGEMENT. Professor Brethour has, on an experimental basis, used the data from such measurements to project an estimated optimum shipping or end date for the measured animals. Also, various methods of sorting and weighing cattle have been known or proposed, as disclosed in U.S. Pat. No. 4,288,856 (Linseth) and U.S. Pat. No. 4,280,448 (Ostermann).
Cattle Scanning Systems of Rapid City, S. Dak., markets a computerized video imaging and sorting system that includes weighing and scanning external dimensions of each animal, assigning a frame score and muscle score to the animal based on such dimensions, calculating a predicted optimal end weight and marketing date from the composite score and current weight data, and then sorting the animals for feeding according to their optimal marketing dates. Feedlots across the country are equipped with ultrasound machines that measure cattle rib size, back fat thickness and marbling scores before the animal is processed. The characteristics of calves are now measured at weaning so that calves with desirable beef traits can be sorted and monitored early based on carcass quality. Due to these technological improvements, cattle displaying characteristics of high beef quality will enjoy a consistent premium market price, while the rest will sell at lower prices.
In light of the ever changing cattle market, a need exists for an improved method of managing cattle production by the cattle producer. Likewise, a need exists for an improved method of managing cattle which spreads the risk of investment loss among a plurality of parties and increases the likelihood of profit from the sale of slaughter cattle for the parties involved in the production and sale of cattle.
The present invention relates to an improved cattle management method utilizing a franchised cattle management system licensed to contract cattle producers. The contract grower producers manage cattle according to given production guidelines from the franchisor that increase the carcass value at sale. The increased carcass value is in large part attributable to selective breeding and physical maintenance guidelines implemented by the contract producer. In return, the contract grower sells a determined population of the herd to the franchisor at or above a guaranteed purchase price made by the franchiser thereby minimizing the risk of loss associated with lower market prices which may exist at the time of sale. Likewise, the franchisor has expanded its ability to increase the herd population without having to expend capital in purchasing land and other resources. The net result is an increased likelihood of generating larger profits for both the franchisor and contract grower derived from the sale of high grade and high quality beef as a result of the cattle management method, reduced exposure to fluctuating market prices and reduced operating costs and expenses.